ATO releases draft guidance on low-risk payments relating to software arrangements – 11 August 2025

On 6 August 2025, the Australian Taxation Office (ATO) released draft practical compliance guideline (PCG) PCG 2025/D4 Low-risk payments relating to software arrangements—ATO compliance approach (PCG 2025/D4).

While the release of PCG 2025/D4 has been eagerly awaited, many readers may be left questioning whether the PCG achieves its intended goal of providing clear and practical public advice and guidance on which taxpayers can rely to manage their tax affairs.